The Brazilian government convened top ministers and officials on Thursday to develop a response to new U.S. trade tariffs. According to sources who attended the meeting at the presidential palace, the administration is considering non-tariff measures targeting the audiovisual sector and patent protections for pharmaceutical products and agricultural seeds. This action follows the U.S. government's announcement on Wednesday of a 25% tariff on various Brazilian goods, citing concerns over unfair trade practices.
Under Brazil’s reciprocity law, officials are evaluating curbs on dividend and royalty remittances by American audiovisual companies. The government is also considering a suspension of intellectual property protections for certain U.S. pharmaceutical and agricultural products. Sources noted that these non-tariff options are viewed as a way to respond without causing domestic inflation or disrupting local supply chains that rely on U.S. imports.
Additionally, Brazil plans to revive a World Trade Organization (WTO) dispute regarding customs duties for electronic transmissions. Establishing a formal dispute settlement panel is intended to provide a legal framework for further retaliatory measures. While Brazilian officials prepare these responses, U.S. representatives have stated that Washington would review its own actions should Brazil move forward with retaliation. Trade data showed that Brazilian shipments to the United States fell by 13% in the first half of the year.